Emerging market portfolios attracted significant foreign inflows for the eighth consecutive month in June, with a net $16.1 billion invested in equity and debt portfolios, according to the Institute of International Finance (IIF). This marks the 5th largest equity inflow in history. The majority of these inflows were directed towards Asia, excluding China. In addition, Japanese stocks saw the largest weekly foreign inflow in nearly six months, driven by a market rally and optimism over corporate earnings. Despite the high U.S. interest rates, foreign investors continue to add to equity portfolios in India and South Korea. In June, $12 billion flowed into EM equity funds, with almost all directed into China ETFs.